Remote and video layoffs: the legal and human side

In December 2021, a mortgage company told about 900 employees on a single group video call, about three minutes long, that they were laid off effective immediately, weeks before the holidays. Some said their work computers shut off before the follow-up email with their severance details arrived. The story made national news, and it is still cited as an example of what not to do.

The mistakes in remote layoffs are usually the same few: too many people on one call, access cut before anyone has spoken to the person, documents that arrive late or not at all, and no one checking in once the screen goes dark.

1. Follow the law where the person works. Remote employees are generally covered by the wage laws of the state where they work. Final pay deadlines differ: Washington requires final wages by the next regular payday, while Oregon requires them by the end of the next business day. Your home state's payroll practice may not be enough. Settle any outstanding expense reimbursements, too, including home-office costs in states that require them.
2. Involve local counsel for anyone outside the U.S. Employees who work in another country are covered by that country's law, which is often very different.
3. Count remote employees for WARN. Under the federal WARN rules for employees who work away from a company site, a remote employee generally counts toward the site that is their home base, assigns their work, or that they report to. A federal bankruptcy court applied that rule to remote employees in 2022. Check state WARN laws, too.
4. Use state-specific severance agreements. Several states restrict what a severance agreement can include. Oregon, for example, limits terms that would stop someone from disclosing discrimination or harassment. One form for every state can fail.
5. Keep the same timelines. Electronic delivery doesn't change the rules. Time to consider and revoke a release, final pay deadlines and benefits notices all still apply.
6. Prepare for unemployment claims in other states. People will usually file where they work. Confirm wages and unemployment taxes have been reported to the right state.
7. Don't deduct unreturned equipment from final pay without checking. Most states limit deductions from wages, and many require the employee's written consent.
8. Confirm contact details before the day. A personal email, phone number and mailing address for every person, since benefits notices and tax forms will go there.

1. A neutral invitation. Short notice, a plain title, and visible only to the people on the call. Never "termination" in a calendar invite.
2. One person, one private video call. Cameras on, with the manager and HR. Schedule it at a reasonable hour in their time zone, and don't ask someone to travel just to hear the news. Turn on captions or arrange an interpreter if they are needed.
3. Check they can talk privately. They may be at home with family nearby. Ask before you share the news, and offer a few minutes to move somewhere quiet.
4. Have a backup. Keep their phone number ready in case the call drops. Don't record the call. Some states require everyone's consent, and it changes the conversation.
5. Change access after the call, not before. No one should learn they lost their job because their laptop locked.
6. Stay on as long as they need. Let them react, ask questions or end the call when they are ready. Ask whether they would like to talk with someone right away.
7. Send the documents during or right after the call. Then confirm they arrived.
8. Protect their records. Make sure they can still reach pay stubs, tax forms and benefits information once their work accounts close.
9. Help them retrieve personal files. Photos, personal documents and contacts often live on a work laptop. Agree on how they can get them back.
10. Let them say goodbye. Ask how they would like their team told, and whether they would like to send a message of their own. Time account changes in shared tools so colleagues don't learn from a deactivated profile before they are told.
11. Make equipment returns easy. A prepaid return box or a pickup, with reasonable time, not a demand that day.
12. Connect them to support that same hour. Someone who calls them, not a link they will find days later.
13. Follow up. A short call a few days later, once the shock has passed, to answer what they couldn't ask the first time.

For the conversation itself, see our guide on how to prepare for a layoff conversation.

• Telling a group of people at once on a video call.
• Telling people by email or text alone.
• Cutting off access before the conversation.
• Using one state's rules for employees in many states.
• Leaving someone without their pay and benefits records.
• Demanding equipment back the same day.
• No one checking in after the call ends.